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However, comparing the market cost of recyclable material with the cost of new raw materials ignores economic externalities—the costs that are currently not counted by the market. Creating a new piece of plastic, for instance, may cause more pollution and be less sustainable than recycling a similar piece of plastic, but these factors will not be counted in market cost. A life cycle assessment can be used to determine the levels of externalities and decide whether the recycling may be worthwhile despite unfavorable market costs. Alternatively, legal means (such as a carbon tax) can be used to bring externalities into the market, so that the market cost of the material becomes close to the true cost.

The construction industry may recycle concrete and old road surface pavement, selling their waste materials for profit.

The amount of energy saved through recycling depends upon the material being recycled and the type of energy accounting that is used. Emergy (spelled with an m) analysis, for example, budgets for the amount of energy of one kind (exergy) that is required to make or transform things into another kind of product or service. Using emergy life-cycle analysis researchers have concluded that materials with large refining costs have the greatest potential for high recycle benefits. Moreover, the highest emergy efficiency accrues from systems geared toward material recycling, where materials are engineered to recycle back into their original form and purpose, followed by adaptive reuse systems where the materials are recycled into a different kind of product, and then by by-product reuse systems where parts of the products are used to make an entirely different product.

Many recycling bins are designed to be easily recognizable, and are marked with slogans promoting recycling on a blue or green background. Others are intentionally unobtrusive. Bins are sometimes different colors so that user may differentiate between the types of materials to be placed in them. While there is no universal standard, the color blue is commonly used to indicate a bin is for recycling in public settings.

Recycling is a process using materials (waste) into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution (from incineration) and water pollution (from landfilling) by reducing the need for "conventional" waste disposal, compost domestique and lower greenhouse gas emissions as compared to plastic production. Recycling is a key component of modern waste reduction and is the third component of the "Reduce, Reuse, Recycle" waste hierarchy.

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